BEV and PHEV in Chinese and European markets by segment
- The distribution of battery electric (BEV) and plug-in hybrid (PHEV) vehicles is very different in China and in Europe. In 2020, of the 995,397 BEVs sold in China, most of them were from the A-segments (313,487 units, or 31% of the Chinese BEV market) and D-segment (380,945 units, or 38% of the Chinese BEV market), when in Europe, with 726,245 BEVs sold in 2020, most of them were in D-segment (201,642 units, or 28% of the European BEV market) and E-segment (146,009 units, or 20% of the European market of BEVs). The Chinese BEV market is therefore focused on the entry-level (like the WulingHongGuang EV) and on the mid-range, while in Europe it is concentrated on the mid-range and on the upper segment.
- There is therefore an entry-level BEV market that could be targeted in Europe, which is already the case by the Chinese carmakers in their home market. If European carmakers do not work on this market with an offer at the right price, Chinese carmakers may see here an opportunity for development outside their local market.
- Regarding PHEVs, we observe the opposite phenomenon. The entry-level Chinese market does not exist, while Europe accounts for 61% of the PHEV market with segments B and C (389,420 units). The C segment alone represents 33% of PHEV sales in Europe (210,670 units), while in China, 59% of PHEV sales are in the D segment. By adding the E segment, we obtain 75% of the Chinese PHEVs market (209,015 units out of 276,561 total sales). The European PHEV market reached 638,568 units in 2020, or 2.3 times the volume of PHEVs registered in China.
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